OCI HUMAN RESOURCES ANALYSIS

GUC Human Resources Management Presented To:- Tarek EL Badawy

Amr Hassan Karim Hodeib

W0906351 W0906745

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Table of Content ContentPage

Introduction..........................................................................................................................3 Vision, Strategy, Values ..4,5 HR Department History..5 Recruitment Section5 Manpower Planning...6 Evaluation and selection Process..11 Personnel Section...13 Operation Section..17 Compensation and benefits Section.17 OCI Academy19 Payroll And Treasury Section.22 HR communication Policy International operation..22 Survey Analysis....23 SWOT Analysis26 Survey Sample & Results....28,29 References30

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Introduction Our History

It all started at 1950 when Onsi Sawiris founded a construction company with a few friends in Upper Egypt. By digging waterways and paving roads, he built his businesses into one of Egypt's largest general contractors. At 1971, the business was nationalized and later became known as the El Nasr Civil Works Company. Not content to be an employee in his own company, Eng Sawiris left for Libya where he continued his construction career. Then in 1976 Mr. Sawiris returned to Egypt and founded Orascom as a general contracting and trading company with five employees. By the early 1990s, Mr. Sawiris had established Orascom as a leading private sector contractor by working in partnership with international companies pursing projects in Egypt. In the mid 1990s, Mr. Sawiris transferred management control to his son, Nassef Sawiris, who embarked upon an ambitious diversification strategy through investments in complementary businesses such as cement and building materials. Then in 1999 Orascom announced its investment in Contrack International. And Nassef Sawiris oversaw the initial public offering of shares in the company on the Cairo and Alexandria Stock Exchange. OCIs first cement subsidiary, the Egyptian Cement Company commenced operations. But as we reached 2004 The Algerian Cement Company commenced operations. OCI announced investments in Pakistan Cement Company, Tasluja cement factory (Iraq) and the BESIX Group (Belgium). The BESIX Group was awarded the contract to build the worlds tallest building the Burj Dubai. Then OCI announced investments in the United Cement Company of Nigeria, Ciment Blanc dAlgerie, Emirates Cement Company, Cementos La Parrilla (Spain), Egyptian Basic Industries Corporation (fertiliser), and Pakistan Cement Company. And in 2006 OCI announced investments in Egyptian Sack Company, Van Cement plant (Turkey) and Grupo GLA (Spain). The fifth line at the Egyptian Cement Company began operations. And OCI announced investments in Al Safwa Cement Company (Saudi Arabia), Samba SPA (largest aggregates supplier in Algeria), Sorfert Algeria (fertiliser), Syrian Cement Company, Sangwon Cement (DPRK), Mafikeng Cement Company (South Africa) and the

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[OCI HUMAN RESOURCES December 21, 2009 ANALYSIS] Egyptian Fertilizer Company. On the 10th December OCI announced that an agreement had been signed with Lafarge for the divestment of the OCI cement group. Last in 2008 On the 23rd January OCI confirmed that the share transfer of 100% of Orascom Building Materials Holding, the holding company for the cement group assets, to Lafarge was executed on the Cairo & Alexandria Stock Exchanges. In February OCI announced Abraaj Capital was to merge its fertilizer production operations under OCI. Our construction group ranks among the worlds top global contractors and operates under three distinct and separate brands. Orascom Construction targets large industrial and infrastructure projects principally in the Middle East and North Africa. The BESIX Group undertakes major commercial, industrial and infrastructure projects throughout Europe, northern and central Africa and the Middle East. Contrack International pursues institutional projects in the Middle East and Central Asia. As part of our long-term strategy to deliver exceptional value and create a sustainable flow of construction opportunities, we also have investments in natural gas industries such as fertilizer producers and in infrastructure concessions. In the first quarter of 2008 our fertilizer group acquired the Egyptian Fertilizers Company and a share of Notore Chemical Industries in Nigeria. We are currently developing two new production plants in Egypt and Algeria. These operations alone will rank us among the regions largest fertilizer producers. We are actively looking for new investment opportunities to grow this business into a global leader.

Our vision:We aspire to be recognized as the contractor of choice for large, complex and demanding construction projects in North Africa and the Middle East. We are working to become a world leader in the production of nitrogen-based fertilizers. We are committed to delivering quality work and products, safely and on schedule. A company that our clients want work with, our customers can rely on and our employees are proud to work for. A company with an open mind ready to embrace new opportunities and driven to deliver exceptional value.

Our strategy:We will work to deliver exceptional value for our shareholders by following a coherent and considered strategy: y y y Targeting large, complex construction projects in emerging markets. Expanding investments in fertilizer production and select downstream Working in partnership with local and global leaders.

activities.

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[OCI HUMAN RESOURCES December 21, 2009 ANALYSIS] y y y y y Investing in the best people and technologies. Maintaining our commitment to quality and safety. Being a good corporate citizen wherever we operate. Providing products and services for people in developing economies. Searching for new opportunities in order to deliver exceptional value.

Our values:y y y y y Excellence in every aspect premium quality and performance resulting from our expertise, efficiency, attention to detail and passion. Exceptional value value based on our strong financial position, our local knowledge, our resources and our technical expertise. Constructive partnerships strong, enduring relationships with clients, customers and partners based on trust, transparency and results. Safety focused an important consideration in every aspect of our operations. Setting global standards and respecting local sensitivities putting our expertise and experience to work for our clients, customers, partners and host communities. Developing our people to match global standards and maintaining a commitment to use local materials and suppliers.

Human Resources Department History:Over the last 50 years, we have grown from a small family run construction business into one of Egypts largest corporations with projects and investments across Europe, the Middle East and North Africa. We directly employ more than 70,000 people. Working together with our employees, business partners, clients and customers, we are helping to build the future in developing countries around the world. Before the year 2000, The HR department was only called Personal Department which consisted only of four employees. All their tasks were involved in the employees social insurance and contracts and their leaves. And After the year 2000, OCI hired a new HR director that has restructured the Personal Department totally into a new architecture with the name of Human Resources department. Which was then divided into six different sections within, Recruitment section, Personal section, Operations Section, Payroll, Compensation & benefit Section, And Training & Development section under the name of OCI Academy. Going through each section from these six sections we can be seeing the function of each one as below:5|P ag e

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I.

The Recruitment section:-

Which is responsible for recruiting employees in the firms different projects locally and abroad as well. Its main cycle starts through the Manpower planning as it has a full map for the firms projects. The Manpower Planning policy is to manage OCI's headcount from existing and plan manpower fulfillment for all OCI departments and projects to meet the company's headcount & cost Expectations. The main purpose for the manpower planning is to forecast the annual headcount needs for all Business Units and Projects, Estimate accurately the Human Resource costs and expenses in the annual budget, Assist the Human Resources decision making process with regards to career advancement and promotion. Prospect the internal project staff releases, to be re-hiring and/or replace existing post holders And Facilitate horizontal placement to broaden employees experience and/or better match employees capability to jobs. Manpower planning is the first step in the recruitment and selection process. The manpower plan will be prepared along with the annual budget. This plan will project the actual quantitative manpower requirements for the current year and forecast for the next years. Thereafter the plan will be reviewed and updated every 6 months and a forecast for the subsequent year will be incorporated. In OCI the manpower could be categorized as follows:-

 Manpower Planning for New Projects

Upon announcing new project launch, Manpower Planning sub-unit will receive staff schedule from The Tendering department, identifying detailed total man-hours and headcount needed for the Projects total months. Manpower planning sub-unit clarifies the priority of key positions & number of employees to be Transferred or hired along with project manager. Once required headcount has been identified, the project manager should document it in Staff Requisition Forms and send it to the manpower planning sub-unit after business units directors Approval. Manpower planning sub-unit must monitor the requested number of staff, in order not to exceed the Number in the Staff Schedule, which has been submitted by the tendering department, unless an Approved justification is presented by business unit directors. Manpower Planning should be based on the OCI historical experience in all Business Units and an Understanding of organizational design best practice.

 Manpower Planning for Internal hiring

All searches must begin with an internal-OCI search conducted though the Manpower Planning Subunit
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[OCI HUMAN RESOURCES December 21, 2009 ANALYSIS] Based on the qualifications specified in the job requisition form according to the following Procedures: 1. Maintain an update database for all the released engineers' technical evaluation, contacts and Resumes. Upon receiving new recruitment requisition, Manpower Planning sub-unit will start searching through the internal releasing engineers database, for the required qualifications 2. Obtain the approval of the potential employee's (candidate) Director/Division head before Recommending CVs for the requested manager or contacting employees. 3. Recommend resumes and coordinate for an interview appointment for accepted once. Internal interviews will follow the same evaluation procedure as external interviews. A written evaluation may be requested from the applicant's direct manager. 4. Follow up for consistent feedback. From three to five working days Manpower Planning sub-unit must send final decision concerning the possibility of the fulfilling the staff requisition from internal sources, unless there was any obstacles. 5. If there was no availability on the Manpower Planning sub-unit database for the required qualifications, will immediately notify the Recruitment sub-unit to proceed with an external search. 6. Manpower planning sub-unit will conduct a curtsy call ten working days prior to the accepted applicant's transfer date for confirmation. 7. In the event of any extension in the releasing date for the selected engineer from his current manager, Manpower planning sub-unit will notify the requested manager with extension duration, and if it was not acceptable , will immediately notify the Recruitment sub-unit to proceed with an external hiring.

 Manpower Planning for Project's Releasing Plan

Towards the end of each project, Manpower Planning sub-unit follow up with project managers along with the staff schedule for the project's indirect staff releasing plan, by collecting the technical Evaluation, releasing dates and any other information needed for internal transfers between projects.

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 Manpower Planning for OCI's Business Units

The Manpower Planning sub-unit in coordination with the concerned department head/project manager should identify key positions, in order to prepare succession plans to fill the sudden vacancies. These plans should be maintained updated and reviewed periodically (semi-annual) or when necessary. Before deadline for the submission of the annual budget, the Manpower Planning sub-unit must Communicate with all department/projects directors/managers to identify total headcount required for the current year and the forecasted for next year. The Manpower Planning sub-unit will prepare complete manpower plan report for the entire group, This shall include: Actual Headcount per department/project Budgeted manpower required for existing and new departments/ projects Turnover Report The Manpower Planning sub-unit shall consolidate all departments/projects (new & existing) manpower Requirements prior to the preparation of the annual budget and estimate Manpower costs.

Approval Authority
Manpower Plan Inventory for all business units must be reviewed and approved by the Human Resources Director consistently once the Manpower Plan Inventory has been completed; it should be presented to the managing Director, who may require changes, according to prevailing business circumstances. Upon updating the required changes from the managing director, it will be approved by him and established in order to be applied for the year

Procedures  Formulate Initial Estimate of Headcount Requirements

Manpower planning sub-unit will initiate the human resources planning process during October of Each year for each department, and will add the estimate required headcounts from the phase of the awarded projects from the Tendering department; hence the tendering department should notify the Manpower planning sub-unit regularly.

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 Refine into Final Estimates of Headcount Requirements

Each department/ project, Director/Manger in cooperation with the Manpower Planning subunit shall perform a cost benefit analysis to weigh the following options: Recruit internally from the same BU or corporate level Hire additional staff (through advertisement or recruitment agent) Redeployment of manpower in the same department (in cooperation with the concerned Department manager) job enlargement and job enrichment may be used to distribute new Accountabilities amongst existing staff. Each department Director/Manger will fill in the workforce-planning sheet and send it to the Manpower Planning sub-unit with the final estimates along with a detailed explanatory memorandum reflecting the proposed changes.

 Review of Final Estimates

The manpower planning sub-unit shall review the final estimates and decide whether to: Transfer employees between existing departments Promote employees Recruit new employees

 Consolidate and Summarize the Final Estimates

The Manpower Planning sub-unit is responsible for consolidating and summarizing the headcount data into the consolidated Workforce Planning Sheet and presents it to top management for approval.

 Determine for Each Employee, Current Annual Basic Salary/Wage, and Allowances
The Manpower Planning sub-unit shall enter the data of each employee into the departmental Workforce budget, sorted and summed by position and grade for each department. The current pay And allowance rates serve as the starting point for projecting future costs. The Manpower Planning sub-unit is responsible for following up on the implementation of the workforce planning process to ensure adherence to the plan. It will record the variance between the planned and the actual workforce costs in terms of number (headcount), grades and compensation and take any corrective action required in coordination with the concerned department head.
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After the Manpower planning cycle finishes, here the recruitment and selection start taking action with a policy that covers all OCI employees regardless of their type of employment, the contract they carry or their location. For the sake of ensuring the provision of highly qualified expertise required to meet OCI immediate and future needs to achieve corporate objectives and strategy. With the compliance with labor laws. This is done using objective search and selection criteria and with no regard to race, color, gender, religion, age or any factor other than the candidates academic and professional qualifications. HR will select a recruitment source according to the nature of the position sources of recruitment Include: OCI Database: Human resources department will start fulfilling recruitment needs from within its database (Taleo) Head Hunting: (Golden candidates) As per best practice, proved to be very strong sources of recruitment for senior managerial positions: Advertisements The human resources department will recruit for all vacancies levels within the company. As well as it will advertise externally for all the required vacancies. Where is considered unlikely that these will be filled internally, external ads may proceed in parallel with internal ads. Any internal ad will state that the post is being advertised externally. Recruiting Agencies Will be used within the company as an alternative to head hunting only where specialized Services are required which can only be provided by a particular agency. Recruiting agencies may be also used for facilitating the recruitment process in countries with no OCI office. The Local recruitment agencies should be authorized by the HR manager, and the International agencies should be authorized by the HR manager and the HR director. College Recruits The company always participates in employment fairs run by academic centers to cover college recruits from which potential graduates could be further invested in.
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All searches must begin with an internal-OCI search conducted though the manpower planning unit based on the qualifications specified in the job requisition form. Refer to the manpower planning policy. If the internal search fails to provide a suitable candidate to the business unit/department head's satisfaction. The manpower planning unit will notify the recruitment unit and an external search is triggered as follows:-

 Screening process
Received resumes will be screened by the recruitment department. Each resume is evaluated According to the criteria for selection listed in the staff requisition form. Selection criteria must be applied uniformly to all applicants. Applicants cannot be eliminated based on personal preferences of qualifications in this initial screening. The recruitment department will collect and compile an initial short-list for applicants who passed the initial screening process

 Evaluation & selection process o Occupational personality questionnaire (OPQ)

Senior managerial levels (grades M1) will undergo an OPQ test as part of their evaluation process.

o HR personal interview
All external applicants must complete the appropriate company application form. Candidates should whenever possible be given a minimum of two days notice to come for an interview. For all vacancies, HR must be involved in the interview process as follows: Senior managerial levels will be met by the recruitment manager and the HR director, Function manager. Interview assessment sheet should always be completed. Non-managerial positions are to be interviewed by recruitment professional and the Function manger. Each interviewer will start an interview file (include: Staff requisition forms, application form, resume and evaluation form). Recruitment Dep. will prepare a short-list of applicants who pass the HR personal interview.

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o Technical interview
The recruitment dep. will submit the interview file to the appropriate line management, who will proceed with technical evaluation for all candidates who pass initial evaluation. Only qualified technical interviewers are allowed to conduct OCI interviews. Qualified interviewers are defined as employees who have attended and passed selection and interviewing training. Each interviewer must fill out his/her interview technical evaluation Form and submit the form, along with the interview file to the recruitment dep.

o Employment references
Usually the decision to recruit should not be made until the reference checks have been conducted. Any offer of employment made before reference checks must be conditional to receive satisfactory feedback. Current employers should not be contacted until an offer has been accepted Reference checks should be conducted either by: Telephone using a standard reference form Letter requesting employment references Reference check should not be conducted without the authority of applicants and should be conducted with at least two employers. Reference forms should be kept in the employees file if accepted. If rejected, it should be kept in the rejected applicants details.

o Offer letter
Employment procedures start after getting the top management approval for employment upon the selection processes performed by the recruitment section and the concerned department. The human resources division (Recruitment Section) will issue a written offer to the preferred candidate; setting out the terms and conditions of employment .It also includes the position, the contract type, and remuneration package. If the candidate accepts, a starting date will be set and the necessary checks will be initiated. The Offer letter is issued subject to the condition that the candidate is able to submit satisfactory references, can obtain all necessary documents, is medically fit, passes any further practical or theoretical tests and is successful in obtaining any work permit (if not an Egyptian national). Where possible, non-Egyptian nationals must prove that there are no outstanding matters pending overseas that could affect their good conduct or standing. Originals, or certified copies, of all certificates supporting the candidates application shall be presented upon request.

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[OCI HUMAN RESOURCES December 21, 2009 ANALYSIS] Candidates currently in Egypt on residence visas, the sponsorship must be transferable to OCI Industries.  OCIs HR needed the help of external HR expert company SHL to build the competency frame for each vacancy and fill in the gaps for the untrained employees, and the promotions structure that each employee should be promoted through.  OCIs HR works through creating a JOB PROFILE for each employee containing the job summary, grades, reporting structure, skills and etc.

II.

Personnel Section

This would be the second section in the HR, and the section that starts its work just after getting the approval of employment from the executives, the recruitment unit will notify the successful applicant to notify him/her that he /she was selected for the job and from here the personnel department has to ask him/her to prepare his/her documents. The personnel section is responsible for many roles in the HR like what will be discussed below and starts from day one of the acceptance of any new employee with:-

 Employment Kit
Employees will be handed an employee kit on their first working day.

 Employment documents (Employee Kit)

The HR operation will provide the candidate with a list of employment document (work papers).The international assignee submits all work papers including medical check-up results to HR operation. The HR operation will review all submitted documents and file them in the Employee personnel file.

 Contract of employment (Employee Kit)

When the employment has been approved, a Service Contract of Employment will be drawnup by the HR operation for joint signature by OCI and the prospective employee. The Chairman and/or the Managing Director will sign the service contract. When the employee signs this contract, it will be deemed that the employee will abide by all OCI Industries Policies and Procedures. The HR operation files the original copy of the contract (Arabic) in the employees personnel file and sends one copy to the employee and another copy will be sent to the Social Insurance Office, within two weeks from the date of signature. An
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[OCI HUMAN RESOURCES December 21, 2009 ANALYSIS] English version of the contract will be written next to the Arabic one in case the employees first language is not Arabic but the Arabic remains the official one. The contract of employment includes the right of either party to terminate the contract, at any time, without providing reasons, but requiring a notice period of one calendar month. The Department Manager at his discretion can waive the requirement for the Employee to serve the notice period. The contract of employment should include the following: Position Basic salary upon commencement Profit share Period of contract Other OCI's benefits e.g. medical insurance, car and accommodation allowance.

Contractual arrangements for assignments on part time/ temporary basis will follow the same procedure and the duration of the assignment will be clearly documented. The HR operation will prepare a notification memo that is sent to the employees department manager informing him/her of the employees date of commencement of employment. By the effective date of commencing work, the candidate becomes an OCI employee.

 Probation period for new personnel

From the date of employment, all employees are required to serve a probationary period of three months. During the probation period, either party may terminate the employment agreement with immediate effect. Two weeks prior to the end of the probation period, HR operation unit will ask the concerned department manager to fill the probation evaluation sheet to judge whether the employee fits the Job or not. The employees department manager prepares a written Probation Evaluation Report for the Employee and meets with him/her to discuss his/her performance before sending it to the Human Resources Department. If the Employees evaluation is unsatisfactory the HR operation unit prepares a Termination Letter to the employee The HR operation files the report and a copy from the termination letter in the Employee personnel file and sends a copy of the letter to the payroll sub-unit. Following the probation period, the probationer will be automatically confirmed as an OCI employee in the absence of formal notification to the contrary Formal notification will result in the termination of services. The contract of employment will be initially valid for a period of one year from the effective date of employment and thereafter will be renewed on an annual basis, unless otherwise
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[OCI HUMAN RESOURCES December 21, 2009 ANALYSIS] terminated in writing by either of the party by giving notice as mentioned below or by prior agreement by both the company and the employee.

 Induction/Orientation
The HR operations section is responsible for undertaking the induction of new employees. HR operation will be responsible for the development of a formal induction course or orientation program which will include briefings on: the group profile, its history, its business operations, different divisions/departments, OCIs policies and procedures. The Department Manager of the Department to which the employee is attached will provide a Briefing on the following aspects: (1 day) The functional role of the Department and how it integrates into the total business operation; Internal and external working relationships. The expected accountabilities of the role and the standard of performance that is expected.

The HR operations section is responsible for announcing any new employees through a monthly e-mail.

 Exit Interview
As well as the personnel section holds the exit interviews for the purpose of this Procedure is to identify any trends requiring attention or any opportunities for improving OCI ability to respond to employee issues, and to retain key people. This Procedure applies to all employees of OCI, both managerial and non-managerial who have been employed for at least twelve (12) consecutive calendar months. These employees will be requested to participate in an exit interview process if they voluntarily resign or retire. Also it is responsible for the following: Maintaining and overseeing the exit interview process Conducting exit interviews with employees Reviewing exit interview results and following up with departments and/or immediate supervisors as appropriate Initiating or recommending immediate action in response to circumstances when needed

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[OCI HUMAN RESOURCES December 21, 2009 ANALYSIS] Analyzing and reporting on consolidated exit interview results on an annual or other regular basis with recommendations for addressing problems/issues identified Ensuring the confidentiality of exit interviews

 Annual Report
The Personnel section will submit an exit interview report to the HR director and the managing director on an annual basis, this report will include the following: Appropriate statistical information regarding the number and distribution of employee departures during the preceding year and her/his reasons for leaving. An analysis and discussion of any trends or common themes which are suggested by the exit interview feedback. A summary of any actions or interventions taken during the year on the basis of exit interview information. Any actions the department feels are required in order to address any concerns or opportunities which are identified through exit interview feedback.

 Works with General OCI Policies

o The employment of close relatives is not recommended in OCI, however under certain conditions and due to business need, only the managing director can waive this policy in favor of employing relatives but in non related functions. o OCI does not accept the re-employment of any of its departing staff. Upon approval of the executives, re-employment can be done based on a specific business needs. o OCI has a continuing commitment to equal employment opportunity (EEO) with absolutely no discrimination with regard to color, race, national origin, religion, gender, age, disability or marital status. o In case of marriage between employees in the same department, one of them should leave the department. o The company complies with all legal implication related to employment according to the Egyptian Labor law # 12 for year 2003.

 Vacations Accruals
The Personnel department is responsible also for the vacations accruals which is the policy that covers all permanent employees who complete 6 months service within the company. So as

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[OCI HUMAN RESOURCES December 21, 2009 ANALYSIS] to Grant and administer the opportunity for employees to receive extended time away from work to regain refreshment and concentration. o Annual Vacation All full and part-time regular and term staff are eligible for paid vacation time. Employees are Eligible for annual paid vacation based upon their years of services in the company. Year Exempt Full-time Staff  1 10 years 21 days (after 6 months service)  More than10 or over 50 years old 30 days Employees are entitled to 6 days casual leaves per year with maximum 2 days consecutive. Those days are deducted from the annual vacation days.

III.

Operations Section:-

This is the third section in HR department who is simply the one in charge for handling day to day functions for employees here in Egypt. As well as having a HR contact person in every country abroad that facilitates any requirement for the employees and could be called The Key Person.

IV.

Compensation and Benefits Section:-

Its the Fourth section in the HR department who is simply concerned with whatever is related for the benefit of the employee. Its policy covers all OCI employees regardless of their type of employment, the contract they carry or their location. Its main purpose is to attract the highly qualified expertise required to achieve corporate objectives and strategies and to retain and reward a current, permanent employee with critical, strategic skills. Through Implementing an appropriate compensation & benefits system based on equal pay for equal work among the employees to support OCIs commitment to equality in employment.

The compensation and benefits section is responsible for the following activities:

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 Salaries and wages: o New hires

New employees start at a salary commensurate with their qualifications and related experience.

o Promotions
A promotion occurs when an employee moves from a lower to a higher level position within OCI. Salary increases for promotions should take into consideration the new level of responsibility, internal equity, and the department's ability to fund the increase.

o Transfers
Transferred employees' project allowance will vary according to their new project/department location

o Annual Salary increase

Employees shall acquire a raise in their salary in the beginning of each year as a kind of benefit based on the company's budget provided that the employee spent not less than four months in the company.

Procedures
The compensation section studies the inflation rate and conducts market salary surveys to set the budget. Then the compensation section sends the proposed budget to the CEO for approval. The compensation section distributes the budget according to each employees evaluation. Then the annual raise should be approved by the Executives. Approved increments are to be sent to the HR Payroll Section for execution.

o Profit Sharing
Employees will be granted annual profit share of the company, distributed in two portions every six month provided that the employee has to have spent a minimum period of one month in the company. Profit share payments for those assigned to the international projects are to be calculated based on their salary in Egypt. Profit share payments are proportional to the time spent by the employee on the company's payroll.
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o Personal Loan
Providing employees with banking benefits from the deals the company developed with the best reputable banks in Egypt.

o Medical insurance policy scope

This policy covers all permanent employees. Family medical coverage covers from grade 3 onward, which is a fringe benefit to cover permanent employees and their family members with a health care coverage policy.

o Life insurance
It covers all full-time employees working in OCI under all forms of contracts at all company Location.

V.

OCI ACADEMY

OCI Academy is the fifth section in the HR department, and its the department thats responsible for the training and development as well as the performance management. OCI Academy responsibilities can be divided as follows:-

 Training Policy International Operations

The training will be applied to all OCI employees; however in certain cases restrictions on Attendance or on the use of funds may be applied. Develop the capabilities and competencies of the employees to meet the business needs. Provide employees with appropriate opportunities to improve their work performance. OCI is committed to fostering an environment that encourages individuals to seek opportunities for professional growth and enrichment. Therefore, OCI recognize the importance of training and development of staff and encourages training and development within a specific training budget approved by the Managing Director, from 3% to 5% from the annual regular employees salaries, in the following areas: Training of new employees Improving the performance of experienced employees Solving operational problems,
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[OCI HUMAN RESOURCES December 21, 2009 ANALYSIS] Developing employees for the future. After the Probation period, the employee will be entitled for the following types of training courses: Soft skills Technical courses Computer courses (general / technical) Language courses Administrative and management skills

Procedures
The employee and his supervisor/ manager shall make a joint to identify whether the Employees current job responsibilities and his behavioral competencies require training and development or not. The training required to be taken will arise from the performance appraisal assessment. By December of each year, based on the annual training budget predetermined by the Managing Director, the training and development unit will prepare the training and contingency plans for the coming year for all OCI depending on the performance appraisal form previously collected. The training and development Manager will conduct a meeting with Departmental / Project Managers to discuss with them whether the training will be: On job Training (In house) Training and development outside Regular working hours Training and development requiring a leave of absence for a period of 10 working days or less Training and development requiring a leave of absence for a period of more than 10 working days. The training can be soft or technical skills courses, studies or seminars, but The Departments / Project's Head must approve the training and development plans to all employees for the coming year. An employee requiring a training course must sign a training pledge and submit it to the Training and Development Unit according to the following conditions.

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For example: - S/N Training local & International

1) If the training cost is from 7000.00 LE TO 15000.00 LE the employee shall sign a 2 year pledge to remain with OCI. If the training cost (including course fees+ Hotel + Ticket + Pocket Money) is from 25000.00 LE to 35000.00 LE the employee shall sign a pledge a 2 year pledge to remain with OCI. 2) If the training cost is more than 15000.00 LE the employee shall sign a 3 years pledge to remain with OCI to remain with OCI. If the training cost (including course fees + Hotel + Ticket) is more than 35000.00 LE the employee shall sign 3 years pledge to remain with OCI to remain with OCI Approvals Dept/ project Director then approval from HR director The HR director then the managing Director.

 Undergraduates summer training policy

Contributing to the development of the community through training undergraduates. As OCI is committed to train undergraduates especially those in their final year. A trainee will be awarded a monthly net compensation of L.E 300 to 600, depending on his/her academic year. All trainees will be evaluated by the end of their training by the direct supervisor. The trainee evaluation form shall be submitted to the training and development unit in order to issue the training certificate. Trainees will be given priority to undertake further training or to be hired after their graduation. The company will consider the evaluation of the trainee as well as the final grade before offering him / her an employment opportunity.

 Leadership Program
Create opportunity for growth within the organization through effective succession planning and internal recruitment. Enhance employees overall job performance and job satisfaction. The career and development unit will select the applicants at middle management level who have: 5 - 15 years of work experience Minimum of 2 years working at OCI Grades from (1) up to (M1)

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[OCI HUMAN RESOURCES December 21, 2009 ANALYSIS] Employees who dont achieve a certain level in English test will be provided English training coursed and will be able to apply again for the program the year after.

Program Content:
Direct coaching Technical training in relevant field Special role assignments Job rotation if needed Soft skills courses Management courses

 Executive Development Program

To provide continuity of leadership in top/key Positions. Develop executive capabilities and competencies to meet business strategy. Ensure that executives possess the competencies and capabilities required to lead the organization and compete in the global environment.

 Internship Program
The Internship Program targets motivated undergraduate engineering students who have completed at least their second year of university. The Internship Program is a program under OCI Academys umbrella. It offers undergraduate engineering students an opportunity to work in OCI for a month (July or August) and to apply the knowledge they have previously learned in their respective universities. The Internship Program is not only beneficial in that it allows students to have on-the-job training, but it also: Opens an opportunity for students to perform tasks related to their university curriculum Prepares the students for the knowledge they will be learning in the future Provides students with a certificate, evaluation and a net compensation payment Allows each student to have an expert coach and receive feedback regularly.

VI.

Payroll And Treasury:-

The payroll is the sixth section in the HR department. Before 2006, the payroll wasnt fully HR section, as it was divided into several procedures the payroll in the HR then goes to the treasury in the Accounting department then to the Audit department. But Starting from 2006, the payroll
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[OCI HUMAN RESOURCES December 21, 2009 ANALYSIS] became a fully HR department, as the payroll and treasury part and audit part and in the end the transfers of the salaries to the bank became all in the HR department. So it became a fully responsible for payment. All that is done in order to maintain full confendetionality. HR Communication Policy International Operations The External and Internal HR Communications Policy applies to OCI and all subsidiaries and affiliates. To ensure that the information contained in all HR communication with external or internal public is consistent, accurate, fair and timely. To ensure the division implements established and strategic HR communication policies and guidelines. To monitor correct implementation of OCIs corporate brand identity and corporate design. To support OCI by creating strong, unique, and consistent internal and external HR communications. To develop HR communication concepts for all topics relevant to OCI based on the input provided by the President/Chief Executive Officer, Chief Financial Officer or Investor Relations Director or their designate(s). The HR communications department develops internal and external relations strategies that effectively communicate our values and vision to our employees and potential candidates. Communications department encompasses public relations, internal HR communications, advertising and promotions, creative services and corporate contributions.

 Internal HR Communication: Internal HR communication among OCI staff that enhances the quality of their work and enables them to interact effectively with people outside the organization on the basis of a shared foundation of knowledge and commitment. Development support HR communication, aimed at delivering OCI staff the information they need to participate fully in development. All HR publications such as brochures, newsletters, magazines, journals, videos, and websites must be approved by the HR communications unit to ensure that they follow OCIs guidelines.  External HR Communication: In the case of any event regarding sponsorship, the recruitment unit must work align with HR communication unit in order to determine the limits of action factors; costs and credibility. OCI will comply with all laws and regulations regarding public disclosure of material information (including material facts and material changes), financial results and operations.
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[OCI HUMAN RESOURCES December 21, 2009 ANALYSIS]

Survey
This survey was applied on a total of 70 Orascom Construction Industries employees; 50 of which are employees of different departments and 20 were Human Resources specialists. The method used was questionnaire, composed of 11 (yes-no) questions, covering the different tasks HR department provides in order to measure and evaluate the effectiveness of the HRM in OCI. As well as to gather information from employees in the HR department and outside the HR department about their opinion in the HRM activities and efficiency, and whether it helps in satisfying the desired end results from satisfying the employees and accomplishing the organization goals. (Found on page 27,28) The data collected showed that, half of the HR departments sample agreed upon their success in providing the employees; with a stable environment, clear patterns to reach their dream jobs, with a flexible policy, with the promises offered at the interviews, with their rights and with a proper orientation allowing them to easily mingle with the companys culture, values and policies. All the HR employees agreed that the companys salaries are too low, that they are satisfied by their jobs and that as HR specialists they do find themselves capable of satisfying the employees and providing them by their training needs. Moreover, they admitted that they are facing a communication problem among their different sections and the companys departments. According to the 50 randomly chosen employees; 70% agreed that the HR department in Orascom Construction and Industries are facing a communication problem among its different teams, sections and with the employees in the company. Also 60% of the employees agreed that, the HR department did succeed in providing them with a stable environment and that they do not see themselves reaching their dream jobs. Furthermore, 60% admitted that they were actually satisfied by their jobs. However, 50% agreed that they are having clearly defined jobs and 40% approved that they are receiving the training courses they need. The sample also showed that 30% of them found the HR policy in OCI to be flexible and that the salaries are rewarding enough, and 20% did receive what they expected from their interviews. None of the 50

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[OCI HUMAN RESOURCES December 21, 2009 ANALYSIS] employees felt that he/she was properly oriented to the companies polices, values and culture, nor was provided by any of the information concerning their rights. As an employee I believe that the Human Resources department in my company has failed to; provide us with a flexible policy, properly orient the employees to the companys culture, polices and values and rights as employees, which in a lot of cases caused culture shocks, since we have a lot of expats. I find our job descriptions to be clearly defined in certain department more than others, for example the IT department has clear job description, where as the Insurance department is a complete wreck, where everybody is responsible of everything all the time, with no clear targets or tasks. I do not find myself reaching my dream job anytime in the coming 10 years, simply because of the unclear hierarchy, and career paths. I do not find the payroll system to be fair enough, and mostly managers and directors assign salaries and titles according to their considerations. I believe the HR department in the company to be facing a serious problem concerning their communication paths within their department and with the rest of the departments. Moreover, they do not provide any of the employees with any sort of orientation to be able to mingle easily with companys polices, values and culture, which made me as an employee fall in too many problems trying to figure out what should be done where and how. In OCI employees get to know about their rights as employees by chance. Discussion Theoretically speaking Human Resources is the function performed in the company that facilitates the most effective use of people to achieve organizational and individual goals. HR should help the organization to reach its goals, employ the skills and abilities of the workforce properly and efficiently, provide it with the properly trained and motivated people, increasing to the fullest the employees job satisfaction, develop and maintain the quality of the working environment for the employees, communicating the HR policy properly to all the employees and develop and maintain the companys values. HRM must determine the organizational needs, evaluate the use and the satisfaction of the other departments, and educate the different departments in an organization about the availability and use of HR services.

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[OCI HUMAN RESOURCES December 21, 2009 ANALYSIS] However, due to my experience and according to this surveys results, I find the HR department at OCI unable to deliver 50% of their tasks. Employees are not aware of their rights; they do not understand the HR services. The sample agreed that the policy is flexible, however, the policy is written in English and more than half of the staff does not understand English. Appraisals are done in too many different ways, not all of the staff understands the goal from it nor how should it be done. More than 50% of the employed staff are accepted according to the managers considerations and not according to their own skills, abilities and knowledge. Training needs are met, but on the other hand, salaries are very low. Orientation is a crucial concept in any of the big organizations, since it will be dealing with too many expats. OCI is considered to be one of the, nevertheless, they lack the orientation stage. Such a problem may lead the newly employed to face many penalties, culture shocks, delay in being accepted in the workplace and being unable to fit in the companys environment. Moreover, HR department should have a clear job description for every job, to be able to create a proper organizational chart. Yet they do not have a clear vision for the insurance, safety and health and treasury departments. In reality too many variables come in the way, but yet lack of organization, cooperation, communication, experience, expertise, control..etc. must lead to a chaos. I would recommend them to set their goals clearer than that, to be able to see their own defaults and send the employees, managers and directors an evaluation form in the end of each year to ask for their opinions and to track their performance. Human Resources department is involved in all the companys tasks; therefore they have to be performing on a better scale.

OCI SWOT Analysis

From the survey and the information gathered from the researches and interviews been made with the company employees, it was easy to perform a SWOT analysis on OCI and its HRM , we found out that its :I. Strength are : y y
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Highest market shares Very high profits

[OCI HUMAN RESOURCES December 21, 2009 ANALYSIS] y y y y y y y y y y y II. Market growth, since we are still penetrating new markets, like Nigeria and Algeria. One of the best brands in Egypt Diversified services Big experience Clear strategic goals Superior research and development Worldwide customer service Strong insurance department, sparing them the great loses Efficient money allocation Too many loyal employees Highest technology

Weakness are: y y y y y y Organizational cart of the company is weak Too many people hired according to consideration and not skills and knowledge Weak communication between departments Slow treasury operations Too many unskilled employees Promotions are up to considerations

III. y y y y y

Opportunities: Penetrating new markets. Newly discovered product uses Newly developed technologies Anticipated favorable government legislations Partnership with big international construction companies to improve image, increase market share and use the advantages of each country for e.g. cheap employees in India. Threats: New technologies. International construction companies penetrating the OCIs market with new innovations or lower costs. New competition Anticipated adverse legislations

IV. y y y y

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[OCI HUMAN RESOURCES December 21, 2009 ANALYSIS]

Effectiveness of the HRM

1. Do you find the HR department providing the company with a stable environment? y Yes y No 2. According to the companys strategy that you are dealing with, do you find yourself fulfilling your dream Job in the coming 5-10 years? / for HR department, do you find your department providing the employees with such a privilege? y Yes y No 3. Do you find the companys HR policy flexible enough? y Yes y No 4. Do you find it rewarding enough? y Yes y No 5. Does your job satisfy you? (ambitions & skills) y Yes y No 6. Did you find what you expected from your interview? Do you find yourself as an HR specialist capable of satisfying your promises to your employees? y Yes y No 7. Do you find your job description clearly defined? y Yes y No

8. Do you believe the HR department is facing a communication problem? y Yes y No 9. Do you find the HR dept. providing you with your training needs? y Yes y No
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[OCI HUMAN RESOURCES December 21, 2009 ANALYSIS]

10. Did the HR dept. provide you with any of the information concerning your rights as an employee? y Yes y No 11. Do you find the HR department providing you with an adequate level of Orientation, allowing you to mingle easily with the companys culture, values and policies? y Yes y No

Sample of the Results:-

Name

Yasmin (HR)

Amr (HR)

Mervat (Proc.)

Nihal (Purch)

Dina (Insur.)

Yasser Sabry (Mech.) (EFC)

Yasser B. (EFC) N N Y N Y N Y Y Y N N

Nevine (IT)

Anw ar (IT) Y N N N Y N Y N Y N N

Quest. 1 2 3 4 5 6 7 8 9 10 11

Y Y,y Y N Y Y,y N N Y Y N

N Y,n N N Y Y,n N Y Y N Y

N N Y N N N N Y N N N

Y Y Y Y Y Y Y Y N N N

N N N Y N N N Y N N N

N Y N Y Y N N Y N N N

Y Y N N Y N Y Y N N N

Y Y N N Y Y Y Y Y N N

Narm in (Trea s.) Y N N N N N N N Y N N

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[OCI HUMAN RESOURCES December 21, 2009 ANALYSIS]

References:Inside The HR Department:y y y y y y y y Marian Samir :- Corporate HR Manager. Karim EL-Zoghby:- HR specialist. Bassem Farouk:- Compensation and benefits section. Sameh Mina:- Payroll section. Maggie Aziz:- Training and development section. Osama Nashed:- Personnel section head. Geroge Nashed:- Operation section. Mohamed Salah:- Recruitment Section.

Other Company Employees (Outside HR department):y y y y y y Dina Ahmed :- Insurance Department Ahmed Anwar:- IT Department Iriny Zakaria:- Procurment Department Mariam Wagdy:- Call Center Ann Victor:- Assistant Director Many other employees were involved in the Survey.

OCI Website:y www.orascomci.com

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